Thursday, December 08, 2005

Funds Blowing Foreign Bubbles?

"I worry that there's this perfect storm coming for emerging markets," said Kristin J. Forbes, a Massachusetts Institute of Technology economics professor who served until early this year on President Bush's Council of Economic Advisers...."You remember what happened after 1996," Rhodes said. "We had 1997. We had 1998. We had the default by Russia, and we had Long-Term Capital Management" -- a Connecticut hedge fund whose collapse in 1998 triggered a nosedive in U.S. stock and bond markets.